The Association of Mine Suppliers and Contractors […]

The Association of Mine Suppliers and Contractors (AMSC) has expressed serious concern over reports that certain Chinese-owned mining firms are deliberately avoiding the recently enacted local content law, which took effect on January 1, 2026. Despite the introduction of Statutory Instrument No. 68, designed to boost local participation in the mining sector, Chinese mining companies operating in Zambia continue to bypass legal requirements intended to empower Zambian businesses.

The law mandates that mining and related firms allocate a minimum of 20% of their annual procurement expenditure to local suppliers for core goods and services, increasing to 25% after one year, 35% within two years, and 40% within five years.

 In an exclusive interview with the Zambian Business Times (ZBT), Costa Mwaba, President of the Association of Mine Suppliers and Contractors (AMSC), expressed concern that the situation with most of the Chinese mining firms has deteriorated rather than improved under the new regulation.

Earlier, before the coming into effect of the law, the Association had voiced its disappointment over the persistent practice among Chinese-owned firms of awarding contracts and business opportunities predominantly to other Chinese nationals. Mwaba noted that despite efforts to encourage inclusivity through legislative measures, the Association notes that some of these firms continue to favor their compatriots, effectively sidelining local Zambian suppliers and contractors.

“Unfortunately, the practice of Chinese firms favoring fellow Chinese nationals for business opportunities has not changed. In fact, the circumvention of the law has only become more sophisticated,” Mwaba stated.

He revealed that some Chinese-owned companies are now listing Zambians, including domestic workers, as shareholders on paper to meet the letter of the law, while true control remains with foreign owners. “These arrangements are designed to create the appearance of local ownership while the real power and financial benefits remain with the original Chinese stakeholders,” Mwaba explained.

 To address this, Mwaba said the Association is working closely with the Ministry of Mines, the Ministry of Commerce, and the Patents and Companies Registration Agency (PACRA) to scrutinize changes in company shareholding.

“We want to examine who held shares before and after the law came into effect, and ensure that any share transactions are legitimate and properly taxed by the Zambia Revenue Authority (ZRA). If not, those found circumventing the law must face appropriate consequences,” Mwaba emphasized. Mwaba called on all stakeholders to support the local content law, stressing that its purpose is not punitive but empowering for Zambian suppliers and contractors.”

For over a century, Zambians have contributed to the mining sector. It is time for mining houses and investors to provide real value to local businesses. Only by doing the right thing can investors feel secure in their operations,” he said.

Article Tyndale Muchiya